Menu

Home Mortgage Refinance decision/options.

Home Mortgages and Home Buying Home Mortgage Refinance decision/options.

  • Avatar mjdevito 
    Participant
    Status: Physician
    Posts: 15
    Joined: 02/11/2019

    Currently have a fixed 20-yr 4% %530K home mortgage that is 3yrs in (i.e. 17yrs left).

     

    Found a refinance rate of 2.875% !!! for a fixed 15-yr mortgage.

     

    Result would be trivial change in my monthly mortgage but likely a savings of approx. $70K over the course of the loan.

     

    Anything I’m missing?  I do need to find out about xfer costs/fees,etc. – what would be ballpark fair amount for that anyway, $2-3K for all costs/fees included?

     

    Thanks!

    #238843 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 8365
    Joined: 01/09/2016

    If you’re planning on staying there past the breakeven point for costs, it makes sense. iow, probably break even in a few years – I would recommend planning to stay a min. of 5 yrs if you’re going to refi. There are several good calculators online to figure out breakeven – Zillow has a very helpful one.

    Johanna Fox Turner, CPA, CFP: I am not your financial advisor; any responses are for general purposes only
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #238938 Reply
    Liked by mjdevito
    Avatar mjdevito 
    Participant
    Status: Physician
    Posts: 15
    Joined: 02/11/2019

    Great!  Yes.. I had calculated by doing the math on my own of $70K savings… zillows calculator states $63K (assuming $5K in closing costs)

     

    Thanks alot for that link share!

    And yes, we plan to stay in the home >10 more years 🙂

    #239110 Reply
    Liked by jfoxcpacfp
    Avatar StarTrekDoc 
    Participant
    Status: Physician
    Posts: 2144
    Joined: 01/15/2017

    Care to share on that 15yr?  We’re kicking around a 15y since 4% 30yr currently and still 10-15yr out for planned retirement.  Best we’ve seen locally with 0pt and reasonable closing is 3.25

    #239114 Reply
    Avatar mjdevito 
    Participant
    Status: Physician
    Posts: 15
    Joined: 02/11/2019

    Im awaiting confirmation on the 2.875% 15yr fixed from bethpage credit union (in NY) – but here is the link (click on ‘mortgages’)

     

    https://www.bethpagefcu.com/rates-calculators.aspx

    #239166 Reply
    Avatar mjdevito 
    Participant
    Status: Physician
    Posts: 15
    Joined: 02/11/2019

    Can I complicate the original question a bit…

     

    I also have a loan on an occupier-owned medical office 9yrs left on a 15yr fixed at 4% rate (private mortgage loan, not with bank).

    I wonder if rather than trying to refinance this one – I could consider to go forward with the above refinanced home mortgage loan at 2.875% for 15yr-fixed and THEN:

     

    take out a HELOC and pay off the medical office loan?

     

    thoughts? Thanks!

     

    #239171 Reply
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 6339
    Joined: 01/12/2016
    Earnest refinancing bonus

    Can I complicate the original question a bit…

     

    I also have a loan on an occupier-owned medical office 9yrs left on a 15yr fixed at 4% rate (private mortgage loan, not with bank).

    I wonder if rather than trying to refinance this one – I could consider to go forward with the above refinanced home mortgage loan at 2.875% for 15yr-fixed and THEN:

     

    take out a HELOC and pay off the medical office loan?

     

    thoughts? Thanks!

     

    Click to expand…

    You’d be transferring a business debt and making it personal which I think doesnt make a lot of sense, but other wise nothing wrong with it. Then again a lot of practice loans make you put your personal assets at risk anyway, so maybe that doesnt matter.

    I would do whatever is cheapest and simplest.

    #239175 Reply
    Liked by StarTrekDoc
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 8365
    Joined: 01/09/2016

    Can I complicate the original question a bit…

     

    I also have a loan on an occupier-owned medical office 9yrs left on a 15yr fixed at 4% rate (private mortgage loan, not with bank).

    I wonder if rather than trying to refinance this one – I could consider to go forward with the above refinanced home mortgage loan at 2.875% for 15yr-fixed and THEN:

     

    take out a HELOC and pay off the medical office loan?

     

    thoughts? Thanks!

     

    Click to expand…

    Interest pd on cash-out refi’s are no longer deductible bg 1/1/2018.

    Johanna Fox Turner, CPA, CFP: I am not your financial advisor; any responses are for general purposes only
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #239177 Reply
    Liked by mjdevito
    Avatar mjdevito 
    Participant
    Status: Physician
    Posts: 15
    Joined: 02/11/2019

    Yes, it seems the bank won’t even do a 10yr fixed on a refinanced owner occupied biz mortgage anyway – unless its >$2mil. ha 🙂

     

    Just going to stick with the home mortgage refi.

     

    Thanks again.

    #239186 Reply
    Liked by Zaphod

Reply To: Home Mortgage Refinance decision/options.

In case of a glitch or error, please save your text elsewhere, clear browser cache, close browser, open browser and refresh the page.

Notifications Mark all as read  |  Clear